Software Industry Equals Open Standards

1,931 views

Published on

I just held this presentation to a large delegation of Chinese IPR and standards experts. The venue was in Chancery Lane, at Wragge & Co in London.

Published in: Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,931
On SlideShare
0
From Embeds
0
Number of Embeds
39
Actions
Shares
0
Downloads
50
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Software Industry Equals Open Standards

  1. 1. <Insert Picture Here> Software Industry Equals Open Standards Trond Arne Undheim, PhD Director Standards Strategy and Policy EMEA EU-China Project on the Protection of Intellectual Property Rights (IPR2) London, 5 December 2008.
  2. 2. Who are we to talk? • 3,000+ products • 2,000+ patents • $3B in development expenditures this year • 20,000+ developers • 6,500 product support specialists • 300,000+ test scripts nightly • 6,500 customer-driven enhancements yearly • 30,000+ servers • 15,000 Partners • 300+ customer advisory boards
  3. 3. Why – of all companies – does Oracle advocate open standards?
  4. 4. Diversified Enterprise Portfolio Across Industries Applications Technology Enterprise Enterprise Manufacturing Performance Industries Management Retail Identity Management Comms Content Management Middleware Banking Management Insurance Database Utilities Systems Management Others
  5. 5. Leader In Key Markets • Database • CRM • Data Warehousing • Human Capital Mgmt • Database on Linux • Retail • Embedded Database • Communications • Middleware • Financial Services • Enterprise Portal • Banking • Application Server • Public Sector • Enterprise Performance • Professional Services Management
  6. 6. “ENOUGH!”
  7. 7. Let’s do the math Interoperability = Open standards
  8. 8. Let’s do the math Open standards + Wide implementation = Good Business
  9. 9. <Insert Picture Here> Nelly Kroes DG COMPETITION “Opting for open standards is a very wise business decision indeed”
  10. 10. The Benefits of Open Standards Innovate Better products New technology Transparency Avoid lock-in Market stability Market access Economic growth Reduce costs Source: The Momentum of Open Standards - a Pragmatic Approach to Software Interoperability The European Journal of ePractice, No.5, 2008 [http://www.epracticejournal.eu/document/5156]
  11. 11. To which certain industry players may ask • Who • What • Why • Where • When?
  12. 12. Open Standards Enhance Innovation • Who? – UC Berkeley economist Hal Varian in Information Rules. – European Commission funded FLOSSIMPACT study. – UC Berkeley sociologist Neil Fliegstein in Architecture of M. • What? – Innovation is whatever action an organization values highly. • Why? – Enables sustainable innovation on top of agreed platform. • Where? – In every well-functioning market – supported by institutions. • When? – Whenever standards create new business (PDF, ODF, XML). – The Internet itself is the best example (HTTP, TCP/IP).
  13. 13. Open Standards Avoid Lock-in • Who? – Repeated attempts at platform monopoly. – All other software players work against this practice. • What? – Collaborative interfaces between technologies. • Why? – Unsustainable in the long run. Hurts markets. Unfair. • Where? – Developed in 500+ consortia – W3C and Oasis. • When? – Whenever competing standards are avoided.
  14. 14. Open Standards Reduce Costs • Who? – Industry analysts like AMR, Forrester, Gartner, & IDC agree. – 1/3 of an average IT budget is spent on integration. • What? – Standards drastically reduce integration costs. • Why? – Business standards are unorganized. Too many, too complex. • Where? – Our acquisition of BEA systems – integrate, don’t shut down. – Oracle Fusion Middleware – connecting technology pieces. • When? – Whenever businesses must collaborate. All business should.
  15. 15. “WAIT!”
  16. 16. <Insert Picture Here> Trond Arne Undheim, Ph.D. Oracle Corporation UK Ltd. “In the software business, creating, consolidating and promoting open standards is the best way to ensure interoperability“
  17. 17. The European Standards Policy Environment • Benchmarking • IMCO-committee • Best practice • ITRE-committee • Legislative initiative European European Commission Parliament EU • 27 Member States • Decision making • EU27+ • Regulations Member States The Council • Influence in Asia and • Directives Latin-America • Decisions
  18. 18. THE
  19. 19. FUTURE
  20. 20. OF
  21. 21. BUSINESS
  22. 22. IS
  23. 23. OPEN
  24. 24. STANDARDS
  25. 25. Why Open Standards are important • Enabling innovation (TCP/IP). • Avoiding lock-in (ODF). • Reducing costs (interoperable technology).
  26. 26. <Insert Picture Here> Vint Cerf Father of the Internet “The Internet is fundamentally based on the existence of open, non- proprietary standards.”
  27. 27. Disruption v. Collaboration
  28. 28. Contemporary Challenges • Business • Social web • Cloud computing • Semantic web
  29. 29. Contemporary Challenges • Business – Core Components Technical Specification (CCTS) (UN/CEFACT) • Cloud computing – Few standards efforts so far • Social web – Open Social (OpenSocial Foundation) • Semantic web
  30. 30. Characteristics of Open Standards The controversial EIF 1.0 (2004) definition: 2. “Adopted and maintained via an open process in which all interested parties can participate, 3. Published and available freely or at a nominal charge, 4. For which the intellectual property – i.e. patents covering (parts of) the standard – is made irrevocably available on a royalty free basis, 5. There are no constraints on the re-use of the standard”. Source: European Interoperability Framework, European Commission IDABC Programme.
  31. 31. The Openness Continuum W3C OASIS ISO Open Social Single-vendor ODF Flash OOXML DocX
  32. 32. The Broken Way Oracle SMEs Single vendor lock-in Chinese government EU
  33. 33. The Better Way Oracle SMEs Open Standards Chinese government EU
  34. 34. The Path Towards Openness Adobe (PDF) PDF/A ISO (PDF) Implementations (PDF) imgres
  35. 35. European Standardization • Legal base – Council Decision 87/95 (ICT standardisation in public sector). – Directive 98/34 (formally recognised standards organisations). • European standards organizations (ESOs) – CENELEC (1959) – Electro-technical standards. – CEN (1961) – European pre-standards and standards in ICT. – ETSI (1988) – Telecom standards.
  36. 36. The Ideal Software Standards Ecosystem • Healthy • Certainty process • Late disclosure as • Non-RF as the Royalty free Disclosed ex ante the exception exception Open Global • Wide implementation • Actual interoperability
  37. 37. Transparent Patent Licensing • Prevent IPR obstacles in software industry. – Prefer ex ante policy, so we can know the terms early. – If disclosure is not made, we favor default royalty free. – RAND is too vague, gives patent holders ex post leverage. • Less burdensome rules for standards participation. – Standards participants are not lawyers. – All users should have de facto access. • Ensure interoperability by open standards.
  38. 38. Conditions On The Ground • Standards edging higher on government agendas – Interoperability Frameworks in many EU Member States. • Denmark and The Netherlands leading the way. – EU considers standards reform • Has 20 year old regulatory framework. • Cannot reference fora/consortia standards in legislation. • Some actors resist change – European Standards Organizations (CEN/CENELEC) – National Standards Organizations (DIN, AFNOR, BSI) – Still selling standards. Need a new business model.
  39. 39. Conclusion • Open standards are market-led activities – Governments must reference fora/consortia standards. – We must all help to simplify the standards environment. – We must try to prevent IPR obstacles by transparency. • In software, ex ante disclosure is important. If not in place, default royalty free can ensure interoperability. • Open standards must be widely implemented – usage means efficiency, effectiveness – for all actors.
  40. 40. THE FUTURE OF BUSINESS IS OPEN STANDARDS See Trond’s Opening Standard http://blogs.oracle.com/trond

×